Financial support in the form of loans with reduced loan fees are available to small and medium-sized residential developers who meet green standards and are delivering more thermally efficient and lower carbon homes in Wales.
Funding
The Development Bank of Wales is committed to sustainable business and the transition to Net Zero and wants to support developers making the change to greener development practices.
We're offering a reduction of up to 2% on residential development loan fees if all of the following green criteria is incorporated into new builds, or a smaller reduction when meeting one or more:
- EPC A rating / Passivhaus status
- Non-concrete structures
- Non-fossil fuel heating system
Green incentive criteria
EPC A rating / Passivhaus status
EPC ratings reflect the energy-efficiency of a property; the latest RICS data (2020) shows 77% of all new builds in Wales achieved a B rating, with only 5% achieving an A rating.
There are several factors that improve current EPC ratings including:
- Insulation (extent and quality)
- Double/triple glazing
- Solar panels
Passivhaus status is generally viewed as a gold standard of energy-efficient homes given the very low energy required to achieve a comfortable temperature year-round, making conventional heating and air conditioning systems obsolete.
At Development Bank of Wales, we want to reward developers who achieve either an EPC A rating or Passivhaus status by offering a fee reduction of 0.5%.
Non-concrete structures
It's widely accepted that alternative structures such as timber frames, hempcrete or limecrete blocks, and mycelium bricks have a lower carbon impact than concrete.
While timber frame homes have become more commonplace over the last decade, the use of less common alternatives is growing but still a long way from becoming mainstream. To support developers looking at using a greener building material, the property team will consider all such options on a case-by-case basis, with the potential to offer a fee reduction of 0.5%.
Non-fossil fuel heating system
Ground and air source heat pumps significantly reduce operational energy demand during the life of a property but tend to carry slightly higher upfront costs.
To help mitigate this, the Development Bank of Wales is incentivising their use with a reduction in loan fees of 0.75% for the use of air source heat pumps and 1% for ground source heat pumps.